Although the pair’s main trend is bearish, EUR/USD began a correction, which isn’t surprising because as you can see on the longer time frames (the monthly and weekly ones) the pair has reached a strong support and it will not be easy to break below it without one.
On the 4H time frame, as you can see on the screenshot, there is a RSI divergence between the last two lows. Although the divergence isn’t significant, it is still a signal for an impending move to the upside.
The limit of the divergence is at least around 1.0520 and I am willing to think that that the pair will reach that level, considering the strong support it needs to break below should it attempt to continue falling.
Also, considering that soon large parts of the world will be celebrating Christmas and then New Year’s Eve, it is quite possible that the correction will last until the first few days of January.
Good point, will keep it in mind!
ReplyDeleteIt could have found some support.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteI agree with your analysis.
ReplyDeleteVery good post.
ReplyDeleteGood read.
ReplyDeleteEnd of year trading, dollar rule.
ReplyDelete